AI boom will drive demand for large-scale data center deals in Asia Pacific this year -

According to LSEG, data center transactions in the region reached an all-time high of US$3.45 billion in 2023. That figure is expected to be surpassed this year, with at least a few big deals in the works.

Data centres are secure, temperature-controlled facilities that house large-capacity servers and data-storage systems, with multiple power sources and high-bandwidth internet connections. More enterprises are now using data centres to host or manage computing infrastructure for their artificial intelligence projects. Photo: Shutterstock — Data centers are secure, temperature-controlled facilities that house high-capacity servers and data storage systems, with multiple power sources and high-bandwidth Internet connectivity. More and more companies are now using data centers to host or manage the computing infrastructure for their artificial intelligence projects.Photo: Shutterstock

Numerous financial sponsors including global investment giants black stoneare considering acquiring air trunkIt owns 11 hyperscale data centers in . Australia The same is true for the rest of the region, according to people close to the deal.

Dear AirTrunk Owner, macquarie group Canada's Public Sector Pension Investment Board (PSP) has valued the business, which could be Asia's biggest data center deal this year, at up to A$15 billion (US$9.8 billion), according to people familiar with the matter. It is said that they are aiming to make it.

Airtrunk, Blackstone, Macquarie and PSP declined to comment.

“The AI revolution is creating an unprecedented wall of demand for high-quality data center capacity,” said Cadence, which advised Australian data center operator NEXTDC on its US$861 million funding raise in April. – Galen Cronin, Managing Director of Advisory, said.

Microsoft chairman and chief executive Satya Nadella speaks during the company’s Build: AI Day event in Kuala Lumpur, Malaysia, on May 2, 2024. Photo: EPA-EFE — Microsoft Chairman and CEO Satya Nadella speaks at the company's Build: AI Day event in Kuala Lumpur, Malaysia on May 2, 2024. Photo: EPA-EFE

“The need to build new capabilities in Asia Pacific over the next three to five years is staggering. My prediction is that deal flow in the data center space will intensify in 2024.”

Telkom Indonesia is open to strategic partnerships to bring its data centre business arm, NeutraDC, new capabilities and into new markets. Photo: SOPA Images/LightRocket via Getty Images — Telkom India is open to strategic partnerships to bring new capabilities of its data center business, NeutraDC, to new markets. Photo: SOPA Images/LightRocket, Getty Images

Other potential deals in Asia include state-owned enterprises. Telkom Indonesiasold $1 billion worth of stake in its data center business; Japan's NEC According to news reports, the sale price of the data center will reach $500 million.

Ahmad Reza, Telkom's senior vice president of investor relations, told Reuters on Wednesday that the company is entering into a strategic partnership to bring new capabilities to its data center business unit, NeutraDC, and expand into new markets. He said he was positive.

“We have considered several potential partners and are still considering the best one,” Reza said. “This process is expected to be completed by the end of this year.”

NEC said it could not comment on market speculation.

A number of companies are looking to acquire AirTrunk, an Australian firm that operates 11 hyperscale data centres like this one in Sydney. Photo: AirTrunk — Many companies are considering acquiring AirTrunk, an Australian company that operates 11 such hyperscale data centers in Sydney.Photo: Air Trunk

US investment company bain capital Seeking credit financing for international assets of data center operator Chindata A source close to Bain Capital said the company also plans to invest in its China operations.

Bain made his data private hong kong stock exchange He signed a US$3.16 billion deal last year but declined to comment.

goldman sachs Asset Management (GSAM), which invested in AirTrunk in 2017 and sold its stake to a Macquarie-led consortium three years later, has spent more than US$1 billion developing data centers in Asia over the past three years.

Nikhil Reddy, head of Asia Pacific real estate at GSAM, said the company will actively invest in additional projects with a particular focus on Japan and South Korea.

“AI creates a different kind of need for data centers, beyond the historical demand for the cloud that focused on low latency. AI now involves massive data consumption, so capacity is key,” he said. said.

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